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appealtrialtrustcorporationrespondentjury instructions

appealtrialverdicttrustrespondent

Related Cases

United Pottery Manufacturing & Accessories, Inc.; U.S. v.

Facts

The respondents, comprising 20 individuals and 23 corporations, were engaged in the manufacture and distribution of 82 percent of vitreous pottery fixtures in the United States. They were convicted for violating the Sherman Anti-Trust Law by fixing prices and limiting sales to a specific group of jobbers. The Circuit Court of Appeals reversed the conviction, citing errors in the trial court's conduct, prompting the United States to seek certiorari from the Supreme Court.

Respondents, engaged in the manufacture or distribution of 82 per cent. of the vitreous pottery fixtures produced in the United States for use in bathrooms and lavatories, were members of a trade organization known as the Sanitary Potters' Association.

Issue

Whether the trial judge correctly withdrew from the jury the consideration of the reasonableness of the restraints charged and whether the trial court erred in its jury instructions regarding the legality of price-fixing agreements.

The issues raised here by the government's specification of errors relate only to the decision of the court of appeals upon its review of certain rulings of the district court made in the course of the trial.

Rule

The Sherman Anti-Trust Law prohibits agreements that restrain trade, and price-fixing agreements are considered unlawful regardless of the reasonableness of the prices involved.

The trial court charged, in submitting the case to the jury, that if it found the agreements or combination complained of, it might return a verdict of guilty without regard to the reasonableness of the prices fixed, or the good intentions of the combining units, whether prices were actually lowered or raised or whether sales were restricted to the special jobbers, since both agreements of themselves were unreasonable restraints.

Analysis

The Supreme Court determined that the trial court's instructions to the jury were appropriate, as they stated that any agreement to fix prices constituted an unreasonable restraint of trade as a matter of law. The Court emphasized that the legality of price-fixing agreements does not depend on the reasonableness of the prices but rather on the nature of the agreements themselves.

The court below held specifically that the trial court erred in refusing to charge as requested and held in effect that the charge as given on this branch of the case was erroneous.

Conclusion

The Supreme Court reinstated the district court's conviction, affirming that the trial court acted within its discretion and that the agreements to fix prices were unlawful under the Sherman Anti-Trust Law.

The combined sentence on both counts does not exceed that which could have been imposed on one alone.

Who won?

The United States prevailed in the case, as the Supreme Court upheld the district court's conviction of the respondents for violating the Sherman Anti-Trust Law.

The Court reinstated the decision of the district court below convicting respondents of violating the Sherman Anti-Trust Law, as the district court acted within its permissible discretion at trial.

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